As a result of the acquisition, Diabetes Care Club is now one of 18 contract suppliers set to distribute diabetic testing supplies as part of Medicare’s national mail-order program on July 1.

“We’re very excited about participating in the competitive bidding program,” stated Doug Hudson, chairman and CEO of Simplex Healthcare, the parent company of Diabetes Care Club. “The program is a great opportunity for our business, and it will benefit Medicare and its beneficiaries through lower costs.”

Diabetes Care Club submitted a bid for the program but was not awarded a contract due to a high bid. The company’s “contingency plan” led to the acquisition of Priority Diabetes Supply, according to the release.

In conjunction with the acquisition, Diabetes Care Club entered into an agreement with Roche Diagnostics Corp., a pharmaceutical and diagnostics company based in Basel, Switzerland, to distribute its line of diabetes test strips to Medicare recipients.